Bitcoin fell 56.2% in the second quarter of 2022, according to crypto analytics platform Coinglass. This makes it Bitcoin’s worst quarter since the third quarter of 2011, when the price of BTC fell 67%. Much of the damage was done in June when Bitcoin plunged 37%, the worst monthly drawdown since September 2011.
All is not dark and catastrophic for crypto investors. On June 29, JPMorgan strategist Nikolaos Panigirtzoglou said the “net leverage measure” suggests that crypto deleveraging may be on its last legs. The eagerness of crypto firms with stronger balance sheets to bail out distressed crypto firms is also a positive sign.
Another positive opinion on Bitcoin came from analysts at Deutsche Bank. In a recent report, strategists said the S&P 500 could recover lost ground and climb back to levels seen in January. This could benefit Bitcoin due to its close correlation with the S&P 500.
Could the downtrend resume or will the lower levels attract buyers? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin fell below immediate support at $19,637 on June 30, but the long tail on the candlestick indicates strong buying at lower levels. The bulls tried to take advantage of the July 1 momentum and push the price towards the overhead resistance at $22,000, but the long wick on the candlestick shows that the bears are active at higher levels.
If the price holds below $19,637, the likelihood of a retest of the critical support at $17,622 increases. The descending moving averages and the relative strength index in the oversold zone indicate that the bears are under control.
A breakout and close below $17,622 could signal the resumption of the downtrend. The next support is at $15,000.
This negative view could be invalidated in the short term if the price breaks above the 20-day exponential moving average ($21,907). Such a move could pave the way for an eventual rally towards the 50-day simple moving average ($26,361).
Ether (ETH) fell below the immediate support of $1,050 on June 30, but the bulls bought the decline. Buyers attempted to extend the rally on July 1, but the long wick on the candlestick shows the bears selling on minor rallies.
The bears will try to pull the price below the psychological level of $1000. If successful, the sell-off could accelerate and the ETH/USDT pair could drop to the important support at $881. If this level breaks, the pair could resume the downtrend. The next support is at $681.
Contrary to this assumption, if the price rebounds from the current level or $1000, the bulls will attempt to push the pair above the 20-day EMA. If they can pull it off, it will suggest the bears might be losing their grip. Bullish momentum could resume on a break above $1,280.
Binance Coin (BNB) broke below the strong support at $211 on June 30, but the lower levels attracted strong buying, as seen by the long tail of the day’s candlestick.
Buyers tried to extend the rally on July 1, but the long wick on the candlestick shows that the bears are aggressively defending the 20-day EMA ($234). The 20-day EMA sloping downwards and the RSI in negative territory indicates an advantage for the sellers.
If the price holds below $211, the BNB/USDT pair could retest the crucial support at $183. If this support cracks, the downtrend could resume. The next support is at $150.
This negative view could be invalidated in the short term if the price rises above the 20-day EMA. This could pave the way for an eventual rally towards the 50-day SMA ($271).
Ripple (XRP) attempted a rally on June 30, but the bulls were unable to push the price above the broad resistance at $0.35. This suggests that the bears are unwilling to give up their advantage.
XRP/USDT could drop to strong support at $0.28 where bulls are likely to mount a strong defense. If the price rebounds from $0.28, it will suggest that the bulls continue to buy at lower levels. The bulls will then make another attempt to push the price above the 50-day SMA ($0.37).
Conversely, if the bears cause the price to drop below $0.28, the next leg of the downtrend could begin. The pair could then drop to $0.23.
Cardano (ADA) rebounded from $0.44 on June 30, but the bulls were unable to break through the 20-day EMA ($0.49) on July 1. This suggests that the bears continue to defend the moving averages with vigor.
The 20-day EMA sloping down and the RSI in the negative zone indicates that the path of least resistance is on the downside. If the price slips below $0.44, the ADA/USDT pair could fall to the critical support of $0.40.
Bulls should defend this level with all their might because if the support cracks, the pair could resume its downtrend. The next support is at $0.33.
Alternatively, if the price rebounds from $0.44 or $0.40, the buyers will again try to clear the overhead resistance at the moving averages. If successful, the pair could initiate a relief rally towards $0.70.
Solana (SOL) broke below immediate support at $33 on June 30, but the long tail on the candlestick shows strong buying at lower levels. The buyers tried to push the price above the 20-day EMA ($36) on July 1, but the bears did not give in.
The sellers will try to gain the upper hand by pulling the price below $30. If they succeed, the SOL/USDT pair could fall to $27 and later to the crucial support at $25.86. A break and close below this level could signal the resumption of the downtrend.
Another possibility is that the price rebounds from $30. This will indicate accumulation at lower levels. The bulls will then try to clear the overhead hurdle at the moving averages and push the price to $50.
Dogecoin (DOGE) is witnessing a tough battle between bulls and bears near the 20-day EMA ($0.07). The RSI is just below the midpoint and the 20-day EMA has flattened out, indicating a minor upside for sellers.
If the price slips below $0.06, it will suggest that the bears are back in the driver’s seat. The sellers will then attempt to push the DOGE/USDT pair down below the strong support at $0.05 and resume the downtrend. The next support is at $0.04.
On the contrary, if the price rises from the current level, the buyers will again attempt to breach the overhead hurdle at the 50-day SMA ($0.08). If they are successful, it will suggest the bears may be losing their grip. The pair could then rally to the strong overhead resistance at $0.10.
Related: What bear market? This token is quietly reaching new highs, up 300% against Bitcoin in 2022
Polkadot (DOT) broke and closed below strong support at $7.30 on June 29. Buyers attempted to push the price back above the June 30 level but failed. This suggests that the bears are selling out with every minor rally.
The 20-day EMA ($7.74) has started to decline and the RSI is in negative territory, indicating that the bears are in control. If the price breaks below $6.36, the DOT/USDT pair could initiate the next leg of the downtrend. The next support is at $5.
Contrary to this assumption, if the price rebounds from the current level, the bulls will again attempt to break out the general resistance at the 20-day EMA. If successful, the pair could rally to the 50-day SMA ($8.89).
UNUS SED LEO (LEO) declined on June 30, but the bulls did not allow the price to fall back into the descending channel. This indicates that the buyers are trying to turn the resistance line into support.
The breakout of the channel indicates the start of a new upward movement. Buyers pushed the price to $6.50 on July 1, but the long wick on the candlestick shows the bears selling on rallies. If the bulls hold the price above $6, the LEO/USD pair could rise to $6.50 again. If this level is breached, the rally could extend to the pattern target of $6.90.
To invalidate this bullish view, the bears will need to pull the price below the 20-day EMA ($5.63). If that happens, the pair may drop to the 50-day SMA ($5.27).
Shiba Inu (SHIB) closed below $0.000010 on June 28, but the bears may hold the lower levels. The bulls bought the dip but struggled to push the price above the 50-day SMA ($0.000010)
Both moving averages have flattened out and the RSI is just below the midpoint. This suggests a state of balance between buyers and sellers. If the price breaks below $0.000009, this will suggest an advantage to the bears. The SHIB/USDT pair could then decline to the crucial support at $0.000007.
Alternatively, if the bulls push the price above the 50-day SMA, the pair could hit $0.000012. This level may again act as resistance but if breached, the rally may reach $0.000014.
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